Rorzex, Inc

question 6

Multiple Choice

Rorzex, Inc. entered into a contract with Denzil under the terms of which Denzil would receive $20,000 if he stole trade secrets from the leading competitor of Rorzex. Denzil performed his end of the agreement by delivering the trade secrets. Rorzex now refuses to pay Denzil for his services. Denzil:

• A) may recover based upon the express contract of the parties.
• B) may recover based upon a quasi-contractual theory in order to prevent the unjust enrichment of Rorzex.
• C) will be unable to recover, because this is an illegal contract.
• D) will be able to recover based upon promissory estoppel, because he has detrimentally relied upon the promises made by Rorzex.

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Definitions:

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used but not yet paid for.

Purchases

Merchandise for resale. It is a cost.

Departmental Gross Profit

The profit made by individual departments within a company, calculated by subtracting the cost of goods sold from the sales revenue generated by each department.

Revenue

Income generated from normal business operations and includes discounts and deductions for returned merchandise.